Necessary steps to register a Switzerland company

Necessary steps to register a Switzerland company

If you plan to register a Switzerland company, it’s important to keep in mind that while Switzerland provided a favorable tax system and various tax incentives especially of foreign investors, there are certain regulations under the Swiss legislation for foreign entrepreneurs who would like to register a company in Switzerland.

Choosing the legal structure when you register a Switzerland company

The first step you need to take when you decide to register a Switzerland company is to choose the most suitable legal structure for your business purposes and the object of the company. The Swiss legislation offers a wide range of legal structures, which enable extensive freedom and flexibility to design the most suitable business structure for a company. While for some companies it’s best to opt for limited liability companies (GmbHs) for others the Swiss corporation structure (AG) is better because it’s most suitable for multinational companies who open a registered office in Switzerland.

AG (SA) is the most commonly used legal structure in Switzerland and it’s suitable for all business needs. It also allows simple transfer of shares. Like in the case of a limited liability company, the shareholders have limited liability, with the additional advantage of remaining anonymous. The AG requires a minimum share capital of 100, 000 CHF, from which at least 20% must be paid-up at the time of registration.

GmbH (SARL) is the name used for limited liability companies in Switzerland. Investors that want to register a Switzerland company for small to medium-sized businesses that are not listed on the Swiss stock market often opt for this type of legal structure. The shareholders of the GmbH are mentioned in the company documents and are also listed in the Swiss Commercial Register. The minimum share capital required for a GmbH is 20,000 CHF or equally valuable assets.

Business partnerships in Switzerland are formed as simple partnerships, limited partnerships or general partnerships. Limited partnerships are formed by business partners that undertake several business activities that don’t need to be commercial. For business partners that undertake commercial activities in Switzerland, the most common used legal structure is the general partnership.

Company branches in Switzerland are most commonly used by foreign companies that expand their business activities on the Swiss market.

Sole proprietorships are designed for individuals who want to run their own business in Switzerland. Sole proprietorships must be registered only after they acquire earnings of more than 2,300 CHF annually. It’s possible to change a sole proprietorship into a GmbH later on.

How to register a company in Switzerland

If you wish to register a Switzerland company, it’s necessary to take the following steps:

• The company documents must be prepared and notarized
• A bank account must be opened with a Swiss bank to deposit the blocked capital
• The share capital must be deposited
• The Swiss bank must release a capital certificate
• A registered office in Switzerland must be set up
• The application for business registration must be submitted
• The registration certificate is received
• The capital bank account becomes a business account for the newly – formed company.

Keep in mind that it is necessary to follow all the legal requirements to register a Switzerland company, which is why it’s best to see advice and consultation with a firm specialized in company formation in Switzerland.